India's manufacturing growth hits a 2-Year low
India's manufacturing sector just posted its slowest growth in two years, with the HSBC PMI falling to 55.0 in December—down from November and even missing early estimates.
The main reasons? Fewer new orders and softer demand at home, leaving factory output at its weakest in over three years.
Exports and jobs feeling the pressure
Exports to Asia, Europe, and the Middle East have dropped to a 14-month low—even though the rupee hit record lows, which usually helps exports.
Job growth is barely moving too, with hiring numbers hovering just above flat since early 2024.
Optimism for the future takes a hit
Business leaders are less hopeful than they've been in over three years.
This slowdown follows a strong run of GDP growth last year and low inflation that let the RBI cut rates by 125 basis points since February 2025—but right now, confidence is definitely cooling off.